Regulation 8 Time and manner of repayments
Subject to regulations 9 to 12 a borrower shall commence repaymentof his loan on 1st April next following the date on which he ceased toattend the course.
Subject to regulations 9 to 12 repayments shall be made in 60monthly instalments calculated in accordance with paragraphs (5) and (6)in the case of a borrower who has received a loan in relation to lessthan five academic years and in 84 such instalments calculated asaforesaid in all other cases.
Interest accrued on a loan shall be added to the loan at regularmonthly intervals and thenceforth form part of the outstanding amount ofthe loan.
On or before the date referred to in paragraph (1), the amount ofthe monthly repayments shall be calculated in accordance with paragraph(5).
The amount of the loan outstanding on the relevant 1st April and ofinterest which will accrue during the period of repayment shall bedivided by the number of repayments, and the amount so calculated shallbe the amount of the monthly repayment until it is re-calculated inaccordance with paragraph (6).
On 1st September next following the date referred to in paragraph(1), and in each subsequent year on that date until the loan has beenrepaid or cancelled, the amount of the loan outstanding on that date andof interest which will accrue during the remaining period of repaymentshall be divided by the number of repayments still to be made and theamount so calculated shall be the amount of the monthly repayment.
For the purposes of calculating monthly repayments under paragraphs(5) and (6) it shall be assumed that—
(if it is not the case) any repayments due prior to the relevantdate have been made;
the rate of interest will not change during the period ofrepayment; and
each repayment will be applied to reduce the amount of the loanimmediately after the addition of interest in accordance with paragraph(3).
Repayments shall be made by direct debit from the borrower’s bank orbuilding society account unless the loans administrator agreesotherwise.
Nothing in this regulation shall be taken to prevent a borrower,after giving notice to the loans administrator, from discharging or withthe agreement of the loans administrator reducing his liability inrespect of his loan sooner than required by the regulation, and where aborrower wishes so to reduce his liability the amount and time ofrepayments shall be determined by the loans administrator and theprovisions of this regulation (except paragraphs (3) and (8)) shall nolonger apply to the loan.